KSA Conducts Impact Assessment of the Increase in Gambling Tax

The Netherlands Gambling Authority (KSA) has conducted an impact assessment of the increase in gambling tax. Effective January 1, 2025, the gambling tax was increased from 30.5% to 34.2%. This increase was intended to increase government revenue. The KSA’s impact assessment shows that this objective has not been achieved. Due to various developments, the gross gaming result (GSR) has declined in both the online and land-based markets. Consequently, despite the increase in gambling tax, tax revenues have decreased.

The increase in gambling tax means that gambling providers must take measures to maintain their profitability. This can be done in various ways, for example, by reducing costs or increasing revenue. In the land-based segment of the market, these options are limited. Therefore, the tax increase is further hampering this segment of the market in particular. The KSA currently sees a faster decline in the number of gaming locations. For example, the number of gaming locations decreased by 9% in the first quarter of 2025 compared to the last quarter of 2024. By comparison, between 2020 and 2025, the number of gaming locations decreased by an average of 6% per year.

The online market’s BSR has also decreased, partly due to the implementation of various measures, such as the Responsible Gaming Policy 2024 and the Regulation on Gaming Limits and More Conscious Gaming Behaviour. However, the online market appears to have slightly more room to absorb the decline in the BSR than land-based providers. This is because they have more options to adjust payout percentages and reduce other costs.

Michel Groothuizen, chairman of the Royal Netherlands Gambling Authority, said: “The measures we have taken to offer players more protection have made it financially more difficult for providers. This has led to a decrease in the BSR (Belgian Gambling Tax) for the entire market. Consequently, gambling tax revenues have also decreased. The Ksa had already indicated this would be the effect before the increase in gambling tax was implemented. A financially driven measure like gambling tax is at odds with the policy objective of offering players more protection. If we want to offer players a protected gaming environment in the future, this requires serious, responsible providers. A financially sound, legal market is essential for this.”